Will the $8,000 federal tax credit be extended?

The market continues to plug along here in Chittenden County. According to the local MLS, as of October 1st, there were 952 homes listed for sale in Chittenden County which is only 33 more than the same time last year. The average time on market was 131 days. The absorption rate (which is the amount of time it would take to sell all the homes on the market at the current rate of sales) is 7.8 months which is not too bad given our current “economic situation” (3 to 6 months is considered a healthy market). The year to date average single family home sales price was down less than 2% to $307,974 compared to last year and the year to date average condo fared much worse, down almost 10% to $207,729.

The 1st time home buyer federal tax credit has been the driving force of the market over the last few months but, that is scheduled to expire on November 30th – less than a month and a half away. Those who have not yet taken advantage of this tax credit opportunity may find its now too late as traditional closing times continue to grow longer with the many changes that continue to take place in the banking and mortgage world.

There are rumours that the tax credit may be extended or even expanded but, right now that is all they are – rumours. We won’t really know until it happens – or – as a true Vermonter might say “hard tellin’ not knowin’ ”